In the coming days, Noida is all set to witness maximum office supply in the National Capital Region (NCR). Currently, under several stages of construction, approximately around 13 million sq ft new floor plates will be made available regarding leasing activity in the city by 2020.
Noida is highly poised to emerge as a new office space destination in the National Capital Region (NCR). Till now, investors were only focusing on Gurugram (Gurgaon), a famous industrial and financial hub of North, where the trend has been set to witness a huge shift. Nonetheless, backed up by a slew of infrastructure projects like Jewar International Airport, numerous ongoing road developments and fast-tracked metro link, the commercial profile of Noida is now ready to encounter a massive change. The city is anticipated to evolve into a vital office space destination in NCR.
As per Colliers International India’s report, ‘Close to 44 mn sq ft of new office space is at several stage of construction in NCR’. Of this, 45% i.e., 13 mn sq ft has been scheduled regarding completion in Noida by 2020, while the remaining 40% and 15% of the supply will be propagated between Gurugram and Delhi’.
The outpouring in supply is actually a impetus push regarding the demand of Grade A office spaces in the city Noida.
Till now, the scarcity of Grade A space as well as poor building management was the key roadblock for Noida.
Noida office space leasing got nosedived by around 22% in 2017.
Only about 2.1 mn sq ft of space got leased during the year 2017, excluding pre-leased and renewals. While the scarcity of quality offices and unfavourable macro-environment result to the downtrend in 2017.
The market finally regained its momentum in the year 2018. Though now investors are foraying into the market, however there inclination towards the premium spaces still persists.
Now as the upcoming commercial buildings along with Expressway are all set to modify the market’s image from an IT dependent to a multi-faceted tenant destination, so obviously it is very important for the developers to provide requisite emphasis onto delivering the quality projects.
Assumptions are high that improved road connectivity and anticipated metro completion in 2018 will attract occupier interest in the industrial & institutional areas of Sector 62-65 together with the Noida Expressway.
Nonetheless, technology occupiers escorting for larger floor plates have finally limited Grade A options in the above mentioned sectors. This has ultimately restricted the leasing options along with the Expressway for the coming years.
Greater Noida’s attractiveness is also anticipated to enhance with the Jewar International Airport, which has finally received a go-head from the government.
One more reason liable behind shifting of numerous small offices in Noida regarding cost optimization is the reduction of travelling time between business districts of South Delhi and Noida.
As always, chances are high that majority of the city’s office space market will get driven by the back-end Information Technology (IT) occupiers, however the upcoming quality floor plates might attract several global corporates to the Noida city.
Along with the modification in the city’s commercial office space, assumptions are high that residential market would also register growth in parallel manner.
With increased absorption in the above mentioned areas, chances are high that housing demand along with Expressway, and in Sectors 55-61 and 71-76 will report a hike.